20495_Debenhams_AR_151104

) Executive Share Option Plan
The ESOP allows the Company to grant options to acquire shares to eligible employees. These options will normally
become exercisable following a three year performance period, only if and to the extent that the performance
conditions to which they are subject have been satisfied. Once the options have vested, the employees have a
seven year period in which to exercise. Options are granted with an exercise price equal to the middle market value
of the shares on the day immediately preceding the date of grant. The options granted on 24 November 2009
became exercisable in full based on ROCE performance exceeding the cost of capital by 7.8% during the applicable
performance period. There are no unvested options under this plan. The weighted average share price at the date
of exercise for ESOP share options exercised during the year ended 30 August 2014 was 103.1 pence. The rules of this
plan will expire in 2016. The Company is not seeking shareholder approval to renew the plan.
c) Share Incentive Plan
The SIP allows the Company to grant options to key senior managers below board level, whom the Company wishes to
retain and incentivise in the short to medium term. Once the options have vested the employee has six months in which
to exercise. There are no unvested options under this plan.
Options granted on 6 December 2012
The options granted on 6 December 2012 over 200,000 shares vested on 6 December 2014. The weighted average share
price at the date of exercise for SIP share options exercised during the year was 72.1 pence.
d) Deferred Bonus Matching Plan
The DBMP allows the Company to invite eligible employees to invest up to 100% of their net annual bonus earned into
shares (“invested shares”). If the participant remains in service for three years and retains the beneficial ownership of all
the invested shares, s/he will, subject to the satisfaction of certain performance conditions, be entitled to a matching
share award equal to the amount of the pre-tax bonus that has been invested. Once the options have vested they are
released to the employee within one month of the vesting date. There are no unvested options under this plan. The
rules of this plan will expire in 2016. The Company is not seeking shareholder approval to renew the plan.
29 Operating lease commitments
Land and
buildings
£m
29 August 2015 30 August 2014
The Group leases department stores, warehouses and offices under non-cancellable operating leases. The leases
have various terms including escalating rent and contingent turnover rent clauses and renewal rights. The Group
has pre-emption rights over a number of properties, which provides the Group with the right of first refusal to purchase
the property in the event the landlord chooses to sell. The option price payable for the property in each instance is
referenced to current market value prevailing at the point of pre-emption. The Group also leases vehicles and fixtures
and equipment under non-cancellable operating leases.
Other
£m
Land and
buildings
£m
The future aggregate minimum lease payments under
non-cancellable operating leases are as follows:
Within one year 206.5 1.7 200.2 1.8
Later than one year and not later than five years 850.9 2.0 843.6 3.0
Later than five years and not later than ten years 1,023.7 – 1,038.8 –
Later than ten years and not later than 20 years 1,579.5 – 1,699.3 –
Later than 20 years 1,052.7 – 1,143.9 –
4,713.3 3.7 4,925.8 4.8
Other
£m
Strategic Report 1-37 Governance 38-58 Financial Statements XX-XX 86-153
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Debenhams Debenhams plc Annual plc Annual Report Report & Accounts & 2015
135